If you’ve reached this page then you are probably looking to make a claim for mis-sold PPI against your bank or other credit provider such as credit card companies or other lenders.
If you already know what you’re doing and just want access to the correct form to fill out then look no further. Regardless what other people say about writing letters to start the claim process, the best way to go about it is to use the form provided by the Financial Ombudsman Service which you can download by clicking the link below:
Fill in all of the detail that the form asks for and send this to the financial institution you are making the claim from. This should have all the information that they need to process your request.
If you want a little more information on PPI, who should claim and how long things take then continue reading the rest of this article where we’ll explain everything.
Am I Entitled To Make A Claim?
The PPI scandal is one that has been ongoing for a number of years now but many people are still making successful claims against their banks and other lenders and there is no time limit on when you have to start the process.
If you have taken out any form of credit such as a credit card or mortgage then there is a chance that you have been charged for payment protection insurance during your repayments. Often this will be stated clearly on your monthly or annual statements but it is not always referred to as insurance; you may see it as ASU (accident, sickness, unemployment) or some other form of “cover” or “protection”.
You should also be able to find details of it within your policy document although it can be harder to spot among all the other fine print than it is on a single page statement.
Alternatively, you should be able to find out by phoning the bank or lender in question and if the policy is still active then, under the rules of the Consumer Credit Act, you are legally entitled to receive details of any PPI paid on policies for a cost of £1 or less. You should receive a response from them within 40 days.
Should you not be able to remember all of the credit agreements you have entered into then you can always use one of the credit report companies who will be able to show you all forms of credit you received over the past 6 years and which companies that credit was supplied by.
So by now you should have discovered whether you have been sold any PPI and the next thing to find out is whether it was technically mis-sold and thus whether you are entitled to make a claim.
Now clearly if you weren’t aware that you were paying PPI then chances are you were mis-sold it at the time you took out credit and even if the whole thing was explained verbally then you should still be ok to make a claim as it is the responsibility of the bank to prove that the policy was explained in the appropriate way.
But there are other indications that you may have been mis-sold a PPI policy and these include:
- if you were unemployed or self employed as PPI is usually not applicable to such people
- similarly, if you were a student when the credit was agreed then you were not eligible for PPI in the first place
- you tried to cancel a PPI policy but were informed that this was not possible
- or you were told that cover was a requirement of you getting the credit in the first place
- the policy did not cover the entire term of the credit agreement
- you had certain medical conditions which excluded you from any PPI policy
- you got credit online and PPI was included by way of a pre-ticked box from which you had to actively opt out of
- the person who sold you the policy had no financial training or background and instead was a store assistant selling a credit package for a purchase
- the full details of costs were not provided at the time the policy was taken out
It is worth noting that even if the company who you got credit from and who sold you the PPI are no longer in business, you can still make a claim as their liabilities are still insured.
Is It Worth Using A Specialist Claims Company?
Since the PPI mis-selling scandal first broke, there have been countless financial firms pop up that offer a claims handling service whereby they deal directly with the lenders on your behalf.
While many people have had success using these companies, the truth is that you are no more likely to receive compensation compared to going it alone.
If the amounts being dealt with are large and/or there are many different agreements to pursue then there may be a case of giving it all to a claims company to deal with as more time will be required but more often than not these companies require exactly the same details and will have very similar forms to fill out than then one linked to above.
On the plus side, nearly all of these claims companies operate on a no-win-no-fee basis so should they not be successful then you won’t pay them a penny.
Most people will be fine to make the claims themselves, but if your claims is more complex then getting the help of a claims company isn’t necessarily a bad thing.
How Long Is The Whole Claims Process?
You may be wondering how long it will be before you receive any form of compensation for your mis-sold PPI so here’s a rough 3-stage time scale to help you figure it out:
Making The Initial Claim: 2 – 8 Weeks
Once you’ve filled out your PPI claim form from the Financial Ombudsman Service (the link at the very beginning of this article) and you have sent it to the financial institution that sold you the PPI, they will look over and confirm all the details of your case before confirming whether or not they agree with your claim.
Some banks move quicker than others at this stage but if you haven’t received a response from them in 8 weeks then you should speak to the FOS who will chase them for a response. You should also speak to the Ombudsman if your lender has refused your claim.
Be aware that some institutions will try to offer you less than the full amount you are entitled to with a promise to complete the claim quickly. Don’t be fooled by this, they have to keep to strict time scales anyway so never accept a lower amount.
Getting The Ombudsman Involved: Up To A Year
Should you have to get the Financial Ombudsman Service (SOS) involved in your case, the time required to get it resolved is likely to be far longer than if the bank agrees with your initial complaint.
Thanks to the huge demand for their services, caused by the unprecedented number of claims being made, the FOS have had to hire some 1,000 extra staff but even with this extra capacity, claims can take quite a while to get looked at.
This is especially true if your case is a complex one and timescales increase the more correspondence is required since much of it is done via post. So ensure that you have ALL the relevant information with you when going to the Ombudsman to avoid any delay in them processing your case. When sending documents via post, it is recommended that you use next day recorded delivery where possible.
There are circumstances where the FOS will review your case more quickly and these include:
- a threat of serious financial difficulty arising from any delays (this might include possible repossession of property should compensation not be received swiftly)
- possible detrimental effects to your health or undue stress given a prolonged claims process
- your financial position is seriously compromised in the event of any delay – this might include potential bankruptcy or late repayments of current debt
Getting Paid: 4 – 8 Weeks
Assuming you are happy with the offer supplied by your bank or other lender, you will be paid either by BACS or by cheque.
It is standard for most claims to be paid out within 28 days of the agreement being reached but you will find no shortage of reports where people have had to wait up to 8 weeks before receiving their payout.
While this is not common, thanks to the huge number of cases being faced by some lenders, the occasional delay is unsurprising.
If you already know that you are entitled to make a claim then the sooner you start, the sooner you will receive any potential payout. That address once again for the claim form from the Financial Ombudsman Service is: